EU-Georgia Deep and Comprehensive Free Trade Area

The EU and Georgia signed an Association Agreement in June 2014 and it entered into force in July 2016. The Deep and Comprehensive Free Trade Area (DCFTA) is an integral part of the Agreement. It reduces tariffs that European firms face when exporting to Georgia. It increases the efficiency of customs procedures. It also facilitates trade further by gradual approximation of Georgian legislation, rules and procedures, including standards, to those of the EU.

The agreement at a glance

The EU-Georgia Association Agreement entered into force on 1 July 2016.

What are the benefits for your business?

The agreement makes it easier for your company to export to and import from Georgia as it

• eliminates most tariffs
• provides for more efficient customs procedures

Who can export from the EU to Georgia under the EU-Georgia Association Agreement?

In order to export from the EU to Georgia your company needs to be registered in one of the EU Member States and have acquired a valid customs declaration, and where necessary, an export licence.

Who can export to the EU from Georgia under the EU-Georgia Association Agreement?

To export to the EU under the EU-Georgia agreement, your company will need to be registered in the Republic of Georgia.

Georgia’s key exports of goods are

• mineral products
• machinery and appliances
• chemical products
• transport equipment

The EU is one of Georgia's main trading partners. Therefore, the country is working towards streamlining its trade legislation and practices with those of the EU, which especially benefits SMEs engaged in trade.

Tariffs

The agreement eliminates most customs duties on goods.

Industrial goods

The EU-Georgia Association Agreement removes 100% of customs duties on industrial goods.

Agricultural products

The EU-Georgia Association Agreement prohibits the use of tariff rate quotas (TRQ) on both imports and exports.

However, for imports into the EU there are a few exceptions for certain sensitive agricultural goods on which tariff rate quotas apply:

TRQ on garlic

An annual TRQ is applied to the import of garlic into the EU. Under the agreement, the EU accepts imports from Georgia amounting to a total of 220 tonnes of garlic per year. Imports included in the total are determined on a first come first served basis. Once the total is exceeded, the EU’s MFN customs duty will be applied. Before you export, check the balance of each applicable quota.

Entry price on certain fruits and vegetables

If you are importing certain fruits and vegetables into the EU, e.g, tomatoes, courgettes or peaches, your goods will be subject to an ‘entry price’ system. Under the agreement this means that the customs duty will be calculated as a specific duty. If the goods you are importing into the EU meet the requirements under the rules of origin, and are valued at a lower invoice price than the amount stated on the specific duty, as the importer, you will bear the difference between the fixed specific duty amount and the invoice amount.

However, you won’t be required to pay any charges where the level of the customs value of the good you are importing from Georgia is equal to, or higher than, the entry price given by the Customs Office.

See the list of goods subject to an entry price.

Do you have to pay the entry price on fruits and vegetables if you are importing goods from Georgia?

In practice, most goods imported from Georgia have a customs value that is higher than the entry price, so in most cases you will not be required to pay an entry price.

Anti-circumvention

Most (processed) agricultural products are subject to an anti-circumvention mechanism, i.e. a threshold for the total volume of imports per year. Annex II-C of the EU-Georgia Association Agreement provides a list of agricultural products to which an anti-circumvention mechanism is applied.

This means that if imports from Georgia exceed a certain level, the EU is allowed to suspend the lower tariffs for these products. The threshold can only be surpassed where the Georgian government can provide sound justification to the EU that Georgian producers have the capacity to produce these goods, and/or the capacity to export volumes in excess of the threshold. If the justification is satisfactory, customs duties will be waived.

This is done to ensure that third party countries do not take advantage of the EU-Georgia agreement and fraudulently export to the EU through Georgia.

Find the tariff rate applicable to your product in My Trade Assistant

Rules of origin

In order to qualify for preferential treatment (lower or no Customs duty), your product needs to comply with certain rules that define its origin, the rules of origin, which are laid down in the Pan-Euro-Mediterranean Convention.

Please check the interactive “Rules of Origin Self Assessment tool (ROSA)” in My Trade Assistant to assess whether your product fulfils the rules of origin and find out how to prepare the correct documents. More information available on how to use ROSA

If you are new to the topic, you can find an introduction to the main concepts in the goods section.

Product requirements

Technical rules and requirements

Under the agreement, Georgia approximated its technical standards and regulations to match those of the EU. This means that most of the technical rules in Georgia will be the same as in the EU.

Georgia approximated regulations including

• the accreditation and marketing of products, which sets out the modules of conformity assessment procedures
• general product safety, setting out criteria on what is to be considered when determining a product as safe, and determining when to prohibit a product because it poses a serious risk to health and safety

For a list of these regulations and other legislation that Georgia implemented, see Annex III-B of the EU-Georgia Association Agreement.

Georgia also agreed to approximate 21 regulations that cover the health and safety requirements of a wide range of products including machinery, lifts, toys, medical devices and simple pressure vessels. These are listed in Annex III-A of the EU-Georgia Association Agreement.

In terms of standards, Georgia has been adopting international and European standards according to best practices. Of all registered Georgian standards, 98% are international and European, while 2% are Georgian-specific.

The following types of standards can be used in Georgia, although on a voluntary basis

• international and regional CIS standards
• standards of any EU or OECD member state
• Georgian standards
• Georgian company standards

If you want to import goods from a Georgian manufacturer who has opted to use their own specifications, you must obtain an EU Declaration of Conformity signed by that manufacturer

The EU Declaration of Conformity certifies and declares that the products concerned satisfy the relevant requirements and standards. After having done this, your manufacturer can then attach the Conformité Européenne (CE) label on their goods, which indicates it has met EU standards.

If your manufacturer opts to prove conformity through an EU Declaration of Conformity, it may cost more in terms of money and time than working with the harmonised EU standards which give equivalence.

View the harmonised standards grouped by the existing sectoral product directives.

How will I know that the goods I am importing conform to the EU regulations and standards?

• after the conformity assessment procedures are done, the relevant documents accompanying your exports from the EU to Georgia will be issued in either English or notarised Georgian translation
• a conformity assessment must be conducted by a Notified Body (which is usually a specific organisation such as a laboratory or inspection or certification body)
• if you are exporting your goods to Georgia, the conformity assessment can be conducted by the Conformity Assessment Body accredited in Georgia
• if you are importing your goods into the EU from Georgia, see the list of the accredited conformity assessment bodies

Georgia is a member of the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, as well as the Stockholm Convention on Persistent Organic Pollutants. As a result, imports of chemicals may be subject to prohibitions or restrictions. The Ministry of Environmental Protection and Agriculture is the Official Contact Point (OCP) regarding such chemicals.

The EU and Georgia are currently working on a type of Mutual Recognition Agreement that will allow certain industrial products that fulfil the requirements of conformity to be placed on either market without further testing or conformity procedures.

Health and safety requirements - SPS

Food safety, animal and plant health

The EU-Georgia agreement removes and prohibits both the EU and Georgia from putting into place any regulations that are unjustified. This is especially to your benefit if you are a small-scale farmer exporting agricultural goods to Georgia.

This does not mean that the level of protection of each of the countries will be compromised. Given that the EU’s food safety standards are very high and strict, the government of Georgia adopts some of the EU’s SPS legislative measures.

The EU-Georgia agreement also ensures that rules on animal welfare and plant health reflect EU norms and the World Organisation for Animal Health (OIE)’s developments.

If Georgia is still approximating EU rules, how do you export/import?

If you are importing any plant and/or animal products into the EU, you will be required to obtain certification from the competent authority of Georgia. This certification should guarantee that your product meets the relevant SPS requirements.

Under the EU-Georgia Association Agreement, the government of Georgia is obligated to notify the EU when it has achieved approximation of the rules relating to animal welfare and plant health and safety. The consultation process to determine whether the approximation of the regulations has been achieved can take up to 360 days.

List of competent authorities

• the National Food Agency (NFA) under the Ministry of Environmental Protection and Agriculture is responsible for supervising, monitoring, conducting planned and/or unplanned inspections, conducting documentary checks, sampling for testing and surveillance on matters related to food safety - this also means that at every stage of production, processing and distribution, the NFA will exercise state control over the compliance of food/feed
  • the NFA also has a veterinary department which is in charge of veterinary controls of live animals and animal products in Georgia
  • the phytosanitary department of the NFA is responsible for regulating pest risk analyses in Georgia
  • the Ministry of Labour, Health and Social Affairs is responsible for health-related commodities and measures - it contributes to crisis management in food safety issues and participates in efforts to ensure that food safety norms and parameters are put in place

  In order to protect human health, specific import proceedings can apply for cosmetics and related commodities, including a hygiene certification procedure and a specific registration procedure for market access in Georgia. You can contact the Ministry of Labour, Health and Social Affairs for information on any required documents.

  • the Revenue Service is a department of the Ministry of Finance which is responsible for compliance with SPS regulations at the external borders of Georgia
  • laboratories are a crucial part of the SPS institutional system. The Georgian Accreditation Centre accredits all laboratories which operate in accordance with recognised international standards

  Technical Barriers to Trade

  Although technical rules are important, they can at times act as barriers to international trade and can thus be a considerable burden for you as an exporter.

  • if you think you are facing a trade barrier that slows your business down or prevents you from exporting, you can tell us
  • report what is stopping your exports to Georgia using the online form. The EU will analyse your situation and take appropriate action

  Customs clearance documents and procedures

  The agreement ensures more transparent and simplified customs procedures to facilitate trade and reduce costs for businesses.

  Documents

  The step-by-step guides describe the different types of documents you should prepare for customs clearance of your products.

  Depending on your product, the customs authorities may require all or some of the elements below

  • commercial invoice (find the specific requirements regarding its form and content in My Trade Assistant)
  • packing list
  • import licences for certain goods
  • certificates showing your product complies with mandatory product regulations, such as health and safety requirements, labelling and packaging
  • proof of origin - origin declaration

  For more certainty, you may wish to apply for Binding Tariff Information and/or Binding Origin Information in advance.

  For detailed information about which documents you need to present for customs clearance for your product, go to My Trade Assistant.

  Procedures for proving and verification of origin

  For descriptions of how to prove the origin of your products to claim preferential tariffs and of rules relating to verification of origin by customs authorities, please refer to the section on rules of origin above.

  For information on customs procedures for import and export in general, visit the website of DG Taxation and Customs Union.

  Intellectual property and geographical indications

  The agreement protects your intellectual property rights when importing and/or exporting your goods to Georgia.

  Trademarks and copyright

  The EU-Georgia Association Agreement complies with several international agreements that regulate the administration of trademarks and copyright. If your application is refused by the trademark administration, the decision must be communicated to you in writing, giving reasons for the refusal.

  Designs and patents

  Your independently created designs that have individual character are protected through their registration for a period of up to 25 years. This will provide you with the exclusive right to use the design and prevent third parties that do not have your consent from using, recreating, selling or importing and/or exporting it.

  Geographical indicators

  A specific committee on geographical indicators that is set up under the EU-Georgia agreement will monitor the implementation of the agreement in this field, and report to the Trade Committee. For more information on geographical indications of agricultural products as well as geographical indications on foodstuffs, types of wines and spirit drinks, see Annex XVII-C of the EU-Georgia Association Agreement.

  How to obtain protection?

  The Sakpatenti is the Georgian independent legal entity responsible for protecting all the intellectual property in the country and for defining intellectual property rights policy.

  You or your representative can apply directly for the registration of a geographical indication. The application should be submitted in paper form or electronically in the Georgian language and should refer to one appellation of origin or geographical indication.

  The application should include

  • a request for the registration of an appellation of origin or a geographical indication
  • the full name (title) and address of the applicant
  • the appellation of origin or geographical indication
  • the name of the goods for which the registration of the appellation of origin or geographical indication is requested

  With your application for a geographical indication, you should also include a document which provides

  • a description of the goods and the raw material, with the indication of their chemical, physical, microbiological and/or organoleptic and other characteristics
  • a description of the location of the geographical area of the origin of goods, with the indication of its exact boundaries
  • a description of the production technology of goods and the conditions and methods of production specific for the relevant geographical area, in case of their existence
  • the data confirming that the specific quality and features of the goods of appellation of origin are essentially or exclusively due to the particular geographical environment and human factors
  • the data confirming that the specific quality, reputation or other characteristics of the goods are linked to this geographical area
    • the document confirming the geographical origin of the goods
    • a power of attorney confirming authorisation of a representative

    Trade in services

    Both the Georgian government and the EU have set out all their existing limitations or reservations to the supply of services, with a high level of transparency. This brings you valuable legal certainty as an EU service provider. For a list of reservations specific to Georgia, see Annexes XIV-E, XIV-F and XIV-G of the EU-Georgia Association Agreement.

    How do you navigate through the Annexes?

    The EU-Georgia agreement contains the following 4 Annexes with reservations by Georgia that might impact you and your business.

    • if you are interested in establishing a business in Georgia, you must see Annex XIV-E which has a negative list of all the service sectors in which you do not have access - this means that you can take advantage of opportunities in all the other sectors that are not listed
    • if you are interested in the cross-border trade of your services, you must see Annex XIV-F which has a positive list of the service sectors where you do have access - this list names all the sectors in which you are allowed to trade
    • if you are looking for graduate trainee or key personnel opportunities, see Annex XIV-G which lists the sectors or subsectors where limitations are applied
    • if you are an independent professional or contractual service supplier, see Annex XIV-H which lists the reservations applied

    Who can establish a business in Georgia?

    • an enterprise, the EU-Georgia agreement allows you to establish or acquire branches of your business, or representative offices in Georgia
    • an individual, the EU-Georgia agreement provides you with opportunities to create and establish your business through self-employment or undertakings that are in your control

    EU service providers will receive the same treatment as that given to Georgian nationals. See Annex XIV-E for a list of sectors where limitations are placed on establishment.

    Cross-border supply of services

    The EU-Georgia agreement allows EU service providers to access the Georgian market under the same conditions as Georgian nationals. Exceptions to this are also listed in Annexes XIV-E, XIV-F and XIV-G of the EU-Georgia Association Agreement.

    What if you want to move to Georgia temporarily for work?

    The EU-Georgia agreement, allows you to temporarily move to Georgia (or the EU) to work as a graduate trainee, a business seller or as one of the key personnel of a company in that country.

    The temporary stay periods are as follows

    • intra-corporate transferee (key personnel of a company in Georgia (or the EU), or graduate trainees) - up to 3 years
    • business visitor (e.g. travelling to establish business in Georgia (or the EU), or a business seller) - up to 90 days in any 12 month period
    • graduate traineewho is not an intra-corporate transferee - up to 1 year

    The EU-Georgia agreement also creates opportunities for contractual service providers in specific sectors in either country. In this regard, however, you must

    • be supplying the service in question on a temporary basis as an employee of an entity that has obtained a service contract not exceeding 1 year
    • possess at least 3 years of professional work experience in the sector you are offering contractual services in
    • have a university degree or qualification demonstrating knowledge of an equivalent level and relevant professional qualifications

    For more information on the limitations that are placed on personnel, graduate trainees, business sellers and contractual service providers, see Annex G of the EU-Georgia Association Agreement.

    The Georgian National Investment Agency promotes business contacts between Georgia and the EU. If you are looking for a Georgian partner, contact the Embassy of Georgia in any of the EU’s Member States.

    Public procurement

    The EU and Georgia envisage mutual access to the public procurement markets in each country at national, regional and local levels. This access will be obtained in phases for Georgia. This is both with regard to public contracts and concessions in the traditional sectors, as well as in the utilities sector.

    The EU-Georgia agreement also makes sure that the consideration of applications for tenders in both countries is done fairly, with the same treatment being exercised towards local and foreign applicants.

    The Agreement obligates both the EU and Georgia to ensure that

    • all the intended procurements are made public - this is done to open the market to competition and to give you access to information regarding the intended procurement prior to the award of the contract
    • there is non-discriminatory description of the subject matter of the contract, showing appropriate time limits, accessible to all economic operators
    • there is no discrimination against you as an economic operator, which might disable you from qualifying for the tender
    • there is transparency in the process of awarding the tender up to the announcement of the winning bid
    • the final decision will be communicated to all applicants - upon request, unsuccessful applicants will receive an explanation to allow you to analyse the decision

    How are contracts awarded?

    Georgia’s State Procurement Agency (SPA) has the leading role in coordinating, implementing and monitoring public procurement. There are five methods which are used to award a tender

    • electronic tender - used for purchases of homogeneous objects with a value equal to or above €75,182
    • simplified electronic tender - used for purchases of homogeneous objects with a value up to €75,182
    • simplified procurement - used for purchases of a value below €1,880 (with different thresholds for diplomatic missions and procurement related to defence, security and maintenance of public order)
    • design contests - used for procurement of design-related projects and services, based on the decision of a contracting authority
    • consolidated tender - a unified, centralised state procurement procedure conducted by the SPA, for the purchase of homogeneous procured objects for different procuring entities

    A ‘White and Black List Registry’ is also maintained on the SPA website. This registry contains two sets of lists.

    • blacklisted applicants who fail to provide a guarantee for implementing a contract and/or refuse to sign the contract with the procuring agency, and/or fail to complete their obligations under the contract - these applicants are blocked from participating in any bids for tenders or being awarded another tender within a year of being placed on the blacklist
    • whitelisted applicants who have successfully complied with the application criteria, are not undergoing insolvency proceedings, do not have any debt towards the state budget, and whose record for the 3 preceding years do not show a turnover less than €375,940

    What if you have a complaint?

    The SPA also has a Dispute Resolution Board (DRB) consisting of 6 members. Three of the members in the board are appointed by the civil society ensuring that there is transparency and independence in the DRB.

    If you have any complaints about the procurement system you can address them to the DRB. The submission and hearing of your complaints will not be subject to any fees.

    How do you submit your complaint?

    You can submit your complaint electronically by filling out a form on the tender page. Once the DRB confirms the legitimacy of your complaint, the DRB may within a maximum of ten days, inform the contracting authority about the error and require a correction. Alternatively, the DRB may also require a total revision or cancellation of the decision of the tender committee or report the case to law enforcement bodies in the event of a serious violation. If you are unhappy with the decision of the DRB, you can appeal the decision in a court of law.

    E-procurement

    You can also use the Unified Electronic System which is the Georgian e-procurement portal. This provides easy access to procurement information, including the announcement of intended procurement activities, the availability of electronic bidding documents, the automated public procurement bulletin and generation of an electronic bid template for electronic operators.

    Links, contacts and documents

    National institutions

    Ministry of Foreign Affairs

    Georgia monitors the import of substances that may be used to produce chemical weapons. Imports of certain chemicals may require a particular authorization and the Ministry of Foreign affairs is the designated national authority.

    Chitadze Street 4, GE-0118 Tbilisi, Georgia

    Tel.: +995 32 2945000 (extension: 1207)

    Fax: +995 32 2945001

    Ministry of Economy and Sustainable Development of Georgia

    Sanapiro Street 2, GE-0114 Tbilisi, Georgia

    Tel.: +995 32 2991111 / +995 32 2991105

    Fax: +995 32 2921534

    National Bank of Georgia

    GE-0114 Tbilisi, Georgia

    Tel.: +995 32 2406120

    National Intellectual Property Centre of Georgia

    Nino Ramishvili Street 4/31, GE-0179 Tbilisi, Georgia

    Tel.: +995 32 2252533

    National Statistics Office of Georgia

    Tsotne Dadiani Street 30, GE-0180 Tbilisi, Georgia

    Tel.: +995 32 2367210

    Enterprise Georgia

    Marjanishvli Street 5/6 (Uznadze Street 18), GE-0102 Tbilisi, Georgia

    Tel.: + 995 32 2960010

    Representations, chambers of commerce and business associations

    Delegation of the European Union to Georgia

    Nino Chkheidze Street 38, GE-0102 Tbilisi, Georgia

    Tel.: +995 32 2943763

    Mission of Georgia to the European Union

    Rue Père Eudore Devroye/Pater Eudore Devroyestraat 245, 1150 Bruxelles/Brussel, Belgique

    Tel.: +995 32 27611190

    Fax: +995 32 27611199

    International Relations Department, Georgian Chamber of Commerce and Industry

    Berdzeni Street 25, GE-0101 Tbilisi, Georgia

    Tel.: +995 32 2694747

    European Business Association Georgia

    Rapiel Eristavi Street 3, IV Floor , GE-0179 Tbilisi, Georgia

    Tel.: +995 599 25 66 55

    EU4Business

    De Kleetlaan 2, B-1831 Diegem, Belgium

    Contacts for technical requirements

    Georgian National Agency for Standards and Metrology

    Chargali Street 67, GE-0178 Tbilisi, Georgia

    Tel.: +995 32 2612530

    Fax: +995 32 2613500

    The Unified National Body of Accreditation

    Al. Kazbegi Avenue 42a, GE-0186 Tbilisi, Georgia

    Tel.: +995 32 2192233 / +995 32 2181824

    Contacts for Sanitary/Phytosanitary Requirements (SPS)

    National Food Agency (NFA)

    Marshal Gelovani Avenue 6, GE-0159 Tbilisi, Georgia

    Tel.: +995 32 2919167

    Fax: +995 32 2919165

    Phytosanitary Department assigned to the National Food Agency

    Marshal Gelovani Avenue 6, GE-0159 Tbilisi, Georgia

    Tel.: +995 32 2919167 (Extensions: 120, 133)

    Fax: +995 32 2919165

    Veterinary Department assigned to the National Food Agency

    Marshal Gelovani Avenue 6, GE-0159 Tbilisi, Georgia

    Tel.: +995 32 2919167 (extensions: 120, 106)

    Fax: +995 32 2919165

    Ministry of Environmental Protection and Agriculture

    Gulua Street 6, GE-0114 Tbilisi, Georgia

    Tel.: +995 32 727231 / +995 32 727232

    Fax: +995 32 727231

    Biodiversity Division of the Ministry of Environmental Protection and Agriculture

    Gulua Street 6, GE-0114 Tbilisi, Georgia

    Tel.: +995 32 727231 / +995 32 727232

    Fax: +995 32 727231

    Ministry of Labour, Health and Social Affairs

    Ak. Tsereteli Avenue 144, GE-0119 Tbilisi, Georgia

    Tel.: +995 32 272538

    Revenue Service, Central Office

    V.Gorgasali Street 16, GE-0114 Tbilisi, Georgia

    Tel.: +995 32 2299299

    Laboratory of the Ministry of Agriculture

    Godziashvilis Street 49, GE-0159 Tbilisi, Georgia

    Tel.: +995 32 2530968

    Fax: +995 32 2541016

    Contacts for public procurement

    State Procurement Agency

    Richard Holbrooke Street 8, GE-0113 Tbilisi, Georgia

    Tel.: +995 32 22484822

    Platform of the State Procurement Agency

    Unified Electronic System:

    Further links

    • you can find more information on the Association Agreement and EU-Georgia trade relations on DG Trade's website. You can also search for other information on EU-Georgia trade relations here
    • if you are interested in information on the implementation of the DCFTA in Georgia, the EU Monitor provides information on the ongoing work in the Association Committee in Trade Configuration
    • the European External Action Service (EEAS) also provides detailed information on EU-Georgia relations. For an overview, you can also consult a factsheet
    • Regional trade helpdesks